MRP-based excise valuation applies to notified footwear even for bulk institutional sales when no exemption removes the goods from Section 4A.

Notified footwear bearing MRP on the package remains assessable under the MRP-based valuation scheme in Section 4A of the Central Excise Act, 1944, where the clearances are not shown to fall within the exemption under Rule 34 of the Weights and Measures (Package Commodities) Rules. Bulk supply to institutional buyers does not, by itself, shift valuation to transaction value under Section 4 when the goods continue to answer the Section 4A conditions. The stated principle is that packaged notified goods with MRP are valued under Section 4A unless a specific exemption removes them from that regime.

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Issues: Whether footwear cleared to institutional buyers with MRP printed on the packages remained assessable under Section 4A of the Central Excise Act, 1944, or had to be valued under Section 4 on the footing that the sales were not retail sales and were outside the statutory scheme.

Analysis: Footwear is a notified item for the purposes of Section 4A. The goods were branded shoes manufactured by the assessee, MRP was affixed on them, and the clearances were not shown to fall within the exemption under Rule 34 of the Weights and Measures (Package Commodities) Rules. In such a situation, valuation is governed by the MRP-based mechanism under Section 4A, and not by transaction value under Section 4. Bulk supplies to institutional buyers do not, by themselves, take the goods outside Section 4A.

Conclusion: The goods were correctly assessable under Section 4A, and the Revenue's challenge failed.

Final Conclusion: The valuation adopted by the assessee was upheld, and the Revenue's appeals were rejected.

Ratio Decidendi: Where notified goods bear MRP and are not excluded by the applicable Weights and Measures exemption, assessment must be made under Section 4A even if the clearances are in bulk to institutional buyers.

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